Can you sell an RDP house?

The Department of Human Settlement (DHS) is the governmental body responsible for the RDP policy. Its mandate originates from Section 26 of the Constitution which deals with the right to housing. The constitutional right is primarily given effect to by means of Section 3 of the Housing Act 107 of 1997.

An important point to remember is that the Act prohibits the sale of an RDP house. This is however qualified that the sale may not occur before the lapse of an 8-year occupancy period without the permission of the Department of Housing. Once the 8-year period expires, and you wish to sell your house, you must ensure that you have the necessary title deed registered on your name. There are dire consequences should you sell your RDP house within 8 years and without the permission of the Department of Housing. You couldpotentially lose your RDP house and/or even face criminal prosecution. The purpose of the RDP Housing project is that they are given to people in desperate need thereof and who qualify for them. Although RDP houses can be sold, it is important to know that according to the regulating laws, it is not easy to do so or to turn them into rental property.

There are a few points to remember and consider when it comes to RDP Housing. You must ensure when the house was first transferred to the owner. If the period of eight years has not lapsed, caution should be used when you are considering buying the property. Request tosee the title deed, as it will be the clearest indication whether the seller has the right to sell the property. It is important to retain legal expertise, as the possible stumbling blocks in RDP Housing sales are vast. It is also difficult to transfer a property without the assistance of an attorney. The sale proceeds should not be paid to the seller until the house has been fullytransferred. Another point to remember is that a person who has inherited an RDP house from a deceased person cannot sell the house until it has been transferred to them. It is a safer route to directly liaise with the Department of Housing when in need of any information or clarity on government-subsidised houses.

Consequently, no purchase price or other remuneration shall be paid to the person who forfeits their RDP to the department. Undoubtedly, given the country’s dire socio-economic status, uncalculated moves of attempting to rent out or sell an RDP house can prove injudicious. Conversely, if a person buys an RDP house from a beneficiary who is selling it before satisfying the eight-year period, that could also prove to be an illegal sale.

To drive it home failure to follow the legally prescribed process when alienating or acquiring RDP property can be costly and regrettable. It is thus advisable that, before or when a person buys or sells an RDP house, especially prior to the eight-year period, they should approach a qualified lawyer (conveyancer) to help them through the legal aspects and ensure the certainty of the property transfer.